EchoStar Corp (NASDAQ: SATS) shares gained over 4% to $76.74 on Tuesday after reports emerged that the company is in talks to sell a portion of its wireless spectrum to Verizon Communications.
The discussions centre around EchoStar’s AWS-3 licenses, which are considered valuable for delivering 5G services, Bloomberg reported.
A recent filing suggested the spectrum is carried at a value of $9.8 billion, although prior deals have fetched significantly more.
CEO Hamid Akhavan said last month the company will "find proper homes" for its spectrum.
EchoStar has recently sold spectrum rights to both AT&T and SpaceX, in transactions reportedly worth around $23 billion and $17 billion, respectively.
The moves come as the company pivots away from building a nationwide network and instead focuses on operating Boost Mobile through a hybrid model using AT&T’s infrastructure.